NetEase Founder Nearly Axes Marvel Rivals Over IP Concerns

NetEase's *Marvel Rivals* has proven to be a smashing success, amassing ten million players within just three days of its launch and generating substantial revenue for NetEase in the subsequent weeks. However, a recent report from Bloomberg sheds light on the precarious journey the game faced before its release. According to the report, NetEase CEO and founder William Ding was on the verge of canceling the project due to his reluctance to utilize licensed intellectual property.

Bloomberg's report delves into the broader context at NetEase, revealing that Ding is implementing significant changes aimed at streamlining the company. This includes job cuts, studio closures, and a withdrawal from international investments. The objective is to create a more focused portfolio to combat recent growth declines and to stay competitive against industry giants like Tencent and MiHoYo.

The decision to nearly cancel *Marvel Rivals* was part of this broader strategy. Sources cited by Bloomberg indicate that Ding was hesitant to pay for the use of Marvel's licensed characters and attempted to convince artists to create original designs instead. The attempted cancellation reportedly cost NetEase millions, but ultimately, the game was released and has since enjoyed tremendous success.

Despite the success of *Marvel Rivals*, NetEase's restructuring efforts continue. Earlier this week, the Seattle team working on *Marvel Rivals* was laid off, with the company citing "organizational reasons." Over the past year, Ding has also ceased investments in overseas projects, having previously invested in studios like Bungie, Devolver Digital, and Blizzard Entertainment. The report suggests that Ding's threshold for game viability is set very high, with a belief that games not generating hundreds of millions annually are not worth pursuing. However, a NetEase spokesperson clarified to Bloomberg that the company does not set "arbitrary blanket numbers" for determining new game viability.

Internally, NetEase is facing challenges as well. Employees speaking to Bloomberg described Ding's leadership style as volatile, characterized by rapid decision-making and frequent changes of mind. Staff have reportedly been pressured to work late, and recent graduates have been placed in significant leadership roles. The report also suggests that Ding's decisions have led to the cancellation of so many projects that NetEase might not release any new games in China next year.

NetEase's retreat from game investments coincides with a period of uncertainty in the gaming industry, particularly in Western markets. The past few years have been marked by widespread layoffs, project cancellations, and studio closures, alongside the disappointing performance of several high-budget, high-profile games.